American Banker publishes its latest research, 2025 Predictions: What Banking Professionals Expect in the Year Ahead

Industry participants anticipate new technologies like artificial intelligence, blockchain and cloud computing will have the most impact on the sector over the next one to three years.

NEW YORK, Jan. 23, 2025 /PRNewswire/ -- American Banker, Arizent's leading resource for senior executives in financial services, publishes its latest research report, 2025 Predictions: What Banking Professionals Expect in the Year Ahead. Sponsored by Jack Henry^™, the survey of industry leaders reveals new technologies are expected to have the most impact on the sector over the next one to three years.

As banks become more tech-focused and begin to recognize the value of technology in their growth, particularly with fraud detection and analytics, more than 80% of respondents plan to increase their tech investments next year, and nearly all plan to at least maintain their current levels. Most of these expenditures are going toward beefing up cybersecurity and cracking down on fraud, with 56% of respondents listing those among their top tech investments.

Key insights from the report include:

• Technology takes center stage: 57% of respondents believe emerging technologies like AI, blockchain and cloud computing will have the greatest impact on banking over the next few years.
• Fraud mitigation is critical: Enhanced security and fraud prevention lead technology spending priorities.
• Shifting regulatory landscape: 45% of respondents identify regulatory changes as a critical trend, with mixed sentiment on their potential impact.
• The evolution of AI: 65% see AI as crucial for combating fraud and enhancing operations.

"This year's survey paints a picture of an industry that's optimistic about its near-term growth prospects, but modestly concerned about its ability to compete with less regulated firms in the long term," says Janet King, Vice President of Research at Arizent. "For example, open banking is widely expected to benefit fintechs and tech giants, while banks worry the data collection and protection standards could prove overly burdensome and put them at a disadvantage."

Along with a new regulatory approach from a new administration, bankers are also counting on looser monetary policy, with 87% of respondents expecting multiple interest rate cuts by the Federal Reserve next year. Taken together, these two trends bode well for mergers and acquisitions. As a result, a quarter of bank and credit union respondents expect their firms to merge with another financial institution next year.

"The sentiment among participants is that big changes are coming in 2025," King continues. "Whatever the outcome, the expectation is for the sector to look significantly different than it does today. The findings highlight an industry at a pivotal juncture, with technological innovation, regulatory shifts and economic conditions set to reshape banking over the next few years."

To dive deeper into the findings — including AI use cases and obstacles to adoption, expectations for loan growth and predictions for new regulations — download the full report here: https://www.americanbanker.com/research-report/banks-look-to-future-and-wonder-about-their-place-in-it

Research methodology
The survey was conducted between October and November of 2024, so some responses were collected before the outcome of the presidential and congressional elections were known — a fact that numerous respondents pointed to as being pivotal to their outlooks and the prospects for the industry. A total of 212 leaders and staff at banks, fintechs and related sectors completed the survey.

About American Banker
American Banker is the essential resource for senior executives in banking and financial services, keeping its members updated on vital developments and focusing sharply on their most important concerns — innovation, transformation and disruption; technology, regulation and reform. Financial industry professionals turn to American Banker every day and throughout the day to stay maximally informed — drilling down on complex issues, keeping up with breaking news and downloading research and data.

About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events, and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning, and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News, and Digital Insurance.

About Jack Henry^™
Jack Henry^™ is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 48 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.

SOURCE Arizent